J.F. Lehman & Company Acquires Atlantic Marine Holding Company

For Immediate Release

August 02, 2006

New York, NY (August 2, 2006) – J.F. Lehman & Company, a New York-based private equity investor, today announced the completion of a control investment in Atlantic Marine Holding Company. The Company is a leading provider of repair, overhaul and maintenance services for commercial seagoing vessels and U.S. Navy ships. Atlantic Marine owns and operates two strategically located shipyards in Jacksonville, Florida and Mobile, Alabama, and leases a third facility located at the Naval Station Mayport in Jacksonville.

John Lehman, Chairman of J.F. Lehman & Company, said “We are pleased to welcome Atlantic Marine into our portfolio of companies. In addition to its well-situated and world class facilities, the Company possesses an outstanding workforce with technical capabilities that enable Atlantic Marine to address diverse markets and vessel types.” Dr. Lehman added, “We look forward to continuing to serve the Company’s blue-chip customer base with the same quality and service that has become the proud heritage of Atlantic Marine.”

Atlantic Marine’s Jacksonville facilities focus on the commercial and U.S. Navy repair market and in recent years has expanded its service offering to the repair and conversion of mega-yachts. The Company’s Mobile operation is an established expert in the bluewater commercial ship repair sector, including vessels that serve the U.S. Defense cargo market. It also is experienced in the repair and conversion of drill rigs and semi-submersibles that serve the offshore oil industry.

In conjunction with the transaction, Ron McAlear, President of Atlantic Marine’s Mobile operations, and Ed Fleming, President of the Company’s Jacksonville facilities, were appointed Chief Executive Officer and Executive Vice President, respectively, of Atlantic Marine Holding Company.

Mr. McAlear commented, “J.F. Lehman’s sponsorship of this transaction represents a perfect fit with our operations and growth strategy. We are pleased to partner with a private equity firm comprised of seasoned professionals with deep bloodlines in our nation’s maritime industry.”

C. Alexander Harman, Senior Vice President of J.F. Lehman & Company, said, “We are excited to partner with the Atlantic Marine management team in this transaction. We believe the Company has tremendous growth prospects and are looking forward to working with management to implement our shared vision.”

Debt financing for the transaction was arranged by BNP Paribas and CIBC World Markets.

About J.F. Lehman & Company
J.F. Lehman & Company is a leading middle-market private equity firm focused exclusively on the defense, aerospace and marine sectors. The firm was founded by John F. Lehman, former Secretary of the United States Navy (1981-1987), and has completed 11 investments (involving 14 companies) with an aggregate transaction value of approximately $1.5 billion. J.F. Lehman & Company has offices in New York, Washington and London. For more information about J.F. Lehman & Company, please visit www.jflehman.com.

J.F. Lehman & Company is a leading middle-market private equity firm focused exclusively on the aerospace, defense, maritime, government and environmental sectors. The firm has offices in New York and Washington, D.C.